if he bought pre-pandemic then yes they will cash flow.if I were you I'd look at Allentown - closer to NY, higher median income and only a slightly higher price point.

However, for the last couple years, their financial situation seemed got worse.

Reduced Living Costs:House hacking allowed me to live in a larger or more desirable property than I could afford at the time solely on my income.

Having a second home less than 75 miles from your primary residence and using it as a STR can cause issues.

That's why it's not selling.In most markets, your Maximum Allowable Offer (MAO) to a seller should be no more than:        MAO = (70% * ARV) - Repairs - Wholesale_Fee        MAO = (0.7 * 290K) - 40K - Wholesale_Fee        MAO = 203K - 40K - Wholesale_Fee        MAO = 163K - Wholesale_Fee               - OR -        MAO + Wholesale_Fee = 163KSo, you'd need to get this under contract with the seller at under $163K to make any money at all as a wholesaler.At $200K you're NEVER going to get any interest from experienced rehabbers.This is also why you probably got no resistance or pushback from the seller.

However, I will say, I would much rather deal with the legal ramifications of giving them their money back and asking them to rent somewhere else, rather than deal with the legal ramifications of an eviction.

The refinance is based on the appraised value, which is usually around 25% more than your purchase price. 

Thanks @Jonathan Klemm. it's just couple of blocks west of palmer square and there are standard size new constructions selling for around $1.3million.Just closed on the purchase and it's a 40 feet wide lot.

I would be more than happy to help you on your journey to investing in the Philly area, I'll shoot you a DM.

I believe your thoughts and brief comments will be better than my 100% effort.